Trading Tips page 4

During the pandemic alone, the U.S. Federal Reserve bought a whopping $3.3 trillion in Treasury bonds and $1.3 trillion in mortgage-backed securities to lower borrowing costs. The reverse process, quantitative tightening (QT), where central banks reduce balance sheets, is much rarer. The Fed is the only central bank that has actually made such an attempt, but it had to stop abruptly in 2019 because of market turmoil. So the asset reduction plan would take the central bank into relatively uncharted territory.

Every trader has at least once heard of aggressive intraday trading when numerous trades are placed during a trading session. Such a trading style is called scalping. Today we will learn what scalping is, how trading using this method works, and what its advantages and risks are. What Is Scalping in Plain Language? Scalping is a kind of speculative intraday trading strategy based on opening many short-term trades to get a small return on them and sum up the expected rate of return.

According to some participants of the forex market, night trading is impossible. Indeed, market activity is very low compared to the daytime, but it is this moment that allows you to place the most profitable trades. The reason for this is the benefits of a low activity state of most players in the financial markets.

The debate between technical and fundamental analysis supporters has been going on for many years, and so far, there are no winners or losers. Most traders prefer technical analysis because it is not that time-consuming and allows traders to monitor several currency instruments simultaneously. In contrast, fundamental analysis traders tend to specialize in one currency pair because they have a huge amount of data to study. Technical analysis is suited for forex trading since the rates in the foreign exchange market change according to the trends.

You have to admit, the phrase "countertrend trading" itself sounds quite strange, and it's hard to hear. It's like "driving on the wrong side of the road". Is it really possible? It turns out that it is possible, and at a proper professional level this trading system brings a good return. But first things first.

Nowadays, there are numerous trading approaches and systems both for trading on forex and CFD contracts. And since it all can be transformed into a computer algorithm, the number of automated trading systems is proportional to the number of ready strategies. Even if you already have a ready strategy for financial gain, it can be computerized in the form of a forex trading robot, which will do the work of the trader.

Competent control of risks and adherence to risk management in trading is the key to success for any trader. But, unfortunately, traders spend very little time on this issue, focusing on finding various profitable strategies and indicators.

Any trading strategy will be absolutely meaningless if you cannot manage your emotions and have not developed a special, trading psychology. You must have three basic components: intelligence, finances, and method.

Willing to start trading forex and don`t know what to do? Went through all the possible sources of information and still don't feel like you are ready? No worries, we got you covered here! In this article, we will go through some tips of forex trading that will help you to get started. These will include some psychological moments and practical aspects aimed to make you feel more confident.